Topic: Stablecoins to face new restrictions in Japan (Read 244 times)
No restrictions can stop progress, only slow it down. You can always use foreign servers and VPNs to bypass restrictions. And it's better to access your wallet from different places, so that they can't determine the location with certainty, if any puncture happens
As far as I know Japan is known to be open to cryptocurrency or Bitcoin, and it doesn't seem to like stablecoins that much so they do that
Or maybe they have other stablecoins they want.
Also, as long as it's in their country and their jurisdiction, we can't do anything about this matter either. And so far I don't see any bad effects caused by this because this country is considered a crypto enthusiast.
Or maybe they have other stablecoins they want.
Also, as long as it's in their country and their jurisdiction, we can't do anything about this matter either. And so far I don't see any bad effects caused by this because this country is considered a crypto enthusiast.
They should have been restricted anyway in all countries, then we wouldn't get the debacle with Luna and their nonsensical algorithm. Maybe they will release a good stable coin that actually is backed by something solid and equally stable
I don't They are a good alternative to fiat currencies. It's not like
But I'm not sure if they're going to be the first country to adopt bitcoin as a payment method. I think it's a good idea to have stablecoins in Japan.
But I'm not sure if they're going to be the first country to adopt bitcoin as a payment method. I think it's a good idea to have stablecoins in Japan.
I don't have a good opinion about stablecoins. And therefore I don't care whether additional restrictions are being imposed on them or not. Take the most popular stablecoin as the prime example. Tether (USDT) is having a market cap of $81.5 billion and remains as the largest stablecoin in the world. But the promoters (iFinex Inc) have refused to conduct third party audits on the backup funds. And at times, they have admitted that only a small fraction of these reserve funds are held as cash or assets that are equivalent to cash. And this is the reason why they have faced legal action from the New York Attorney General office (NYAG), as well as from the United States Commodity Futures Trading Commission (CFTC).
Private and commercial fiat-backed stablecoins pose a hidden danger to the financial system of states. Any abuse with their release and use will harm the state, and if their market capitalization is several tens of billions of dollars, this will affect the global financial system as a whole. Therefore, it is not surprising that states will strictly regulate, and even prohibit the circulation of such stablecoins. And it is hardly surprising that Japan, which was among the first to legalize cryptocurrencies back in 2017, has a rather negative attitude towards stablecoins.The only possible harm to the state from stablecoins is the gap between the issued tokens and the supply. if there is a gap, the state has problems. Everything else is not critical, and maybe even beneficial. That is why, all countries are introducing strict control over the emission of stablecoins and their real backing with fiat currency, and constant monitoring and reporting of companies issuing tokens.
I don't have a good opinion about stablecoins. And therefore I don't care whether additional restrictions are being imposed on them or not. Take the most popular stablecoin as the prime example. Tether (USDT) is having a market cap of $81.5 billion and remains as the largest stablecoin in the world. But the promoters (iFinex Inc) have refused to conduct third party audits on the backup funds. And at times, they have admitted that only a small fraction of these reserve funds are held as cash or assets that are equivalent to cash. And this is the reason why they have faced legal action from the New York Attorney General office (NYAG), as well as from the United States Commodity Futures Trading Commission (CFTC).
Private and commercial fiat-backed stablecoins pose a hidden danger to the financial system of states. Any abuse with their release and use will harm the state, and if their market capitalization is several tens of billions of dollars, this will affect the global financial system as a whole. Therefore, it is not surprising that states will strictly regulate, and even prohibit the circulation of such stablecoins. And it is hardly surprising that Japan, which was among the first to legalize cryptocurrencies back in 2017, has a rather negative attitude towards stablecoins. 
I don't have a good opinion about stablecoins. And therefore I don't care whether additional restrictions are being imposed on them or not. Take the most popular stablecoin as the prime example. Tether (USDT) is having a market cap of $81.5 billion and remains as the largest stablecoin in the world. But the promoters (iFinex Inc) have refused to conduct third party audits on the backup funds. And at times, they have admitted that only a small fraction of these reserve funds are held as cash or assets that are equivalent to cash. And this is the reason why they have faced legal action from the New York Attorney General office (NYAG), as well as from the United States Commodity Futures Trading Commission (CFTC).
Japan almost follows the American financial policies, I should not be surprised that they issued restrictions similar to what happened in the United States of America, but I do not expect them to be as strict.
It seems that the new stablecoin will face many difficulties, and there may not be other stable currencies, and that decentralized models and other solutions that move away from banking systems will not be available, and therefore all future stable currencies will be a Trojan horse due to the fact that their accounts and assets will be bank deposits that are easy to regulate and ban it.
If an entity decides to create a decentralized stablecoin, how will it be fought? in this case i mean DAI
Stablecoins? It's like the gold rush all over again, people! Like a Jack-in-the-Box, but with coins and regulations? They just keep circling the drain. DAI and other decentralized coins may have advantages, but do they come without any dangers? They loom large.It seems that the new stablecoin will face many difficulties, and there may not be other stable currencies, and that decentralized models and other solutions that move away from banking systems will not be available, and therefore all future stable currencies will be a Trojan horse due to the fact that their accounts and assets will be bank deposits that are easy to regulate and ban it.
If an entity decides to create a decentralized stablecoin, how will it be fought? in this case i mean DAI
Imagine that a mafia boss finds an independent stablecoin to be his heaven. Too few constraints? Uncertainty about the coin's long-term viability causes investors anxiety.
The key is... It's like attempting to juggle innovation and safety while walking a tightrope above Niagara Falls. Protecting citizens from the oncoming storm with cutting-edge technological measures. This is going to be one wild ride, but you won't regret it.
The topic of stablecoins is subtle. At least in whether there is a REAL security of crypto tokens issued by companies by issuers. And not only the reality of the collateral, but also the correspondence between the real volume of token emission and the real collateral.
And control and strict rules of work are necessary, otherwise stable coins will become new centers of new air, financial, bubbles. Which are guaranteed to burst, and the state will be forced to solve this problem with REAL money.
And control and strict rules of work are necessary, otherwise stable coins will become new centers of new air, financial, bubbles. Which are guaranteed to burst, and the state will be forced to solve this problem with REAL money.
Japan almost follows the American financial policies, I should not be surprised that they issued restrictions similar to what happened in the United States of America, but I do not expect them to be as strict.
It seems that the new stablecoin will face many difficulties, and there may not be other stable currencies, and that decentralized models and other solutions that move away from banking systems will not be available, and therefore all future stable currencies will be a Trojan horse due to the fact that their accounts and assets will be bank deposits that are easy to regulate and ban it.
If an entity decides to create a decentralized stablecoin, how will it be fought? in this case i mean DAI
It seems that the new stablecoin will face many difficulties, and there may not be other stable currencies, and that decentralized models and other solutions that move away from banking systems will not be available, and therefore all future stable currencies will be a Trojan horse due to the fact that their accounts and assets will be bank deposits that are easy to regulate and ban it.
If an entity decides to create a decentralized stablecoin, how will it be fought? in this case i mean DAI
The government and the big banks of the conservative Japan want to have the monopoly of the money in their society and as a consequence, Tether and other stable coins have no place in their future model of economy. I must say I did not expect it from Japan. Let us see what happens next, I doubt they would do the same to Bitcoin, by the way.
I guess that's to be expected in a country where is about to develop their own CBDC. That's the main reason why they're making it and they don't want any interference whether some stable coins have been there stably being used by people globally. But then the main deal here is for them to introduce it to their own people and for them to have it used and that's why restrictions of its usage is a must and implement it so that people who got it will have to dump it and replace it with what's compliant to the government of Japan. They've got no control with Tether or any other stable coins that are there because it only shows that they are certain that they'll really have to implement its usage and its circulation should only lie into their economy and, could be soon be used outside their economy aiming the same purpose of USDT and of the same.
Like you, I share the same enthusiasm for stablecoins in their classic sense. The use of stablecoins as a trading instrument has made them a force capable of conquering new markets. The problem began to appear with the development of smart contracts, so that most of these currencies became completely centralized, and its issuer could control its properties even after its launch, including freezing and burning. Add to this the ease of manipulation of the supply, since stable currencies can be issued without a fixed cover of dollars, gold, or a source of value.
It is expected, Stablecoins must stay in the crypto space for trading purposes and tokens/pairs only and must in no way be use as money in the open world, with regulations kicking at the door it is definitely the right approach from the Japanese government, CBDC will be what stablecoin wanted to be, CBDC will be more embraced by the government, it's their digital coin but also a bad one for crypto users because I bet that every transaction will be known and trackable, I am somehow against CDBC because monitoring peoples lives is what the government knows best, it's their thing. It's left for crypto adopters to decide if they will really start using CBDC or not. As for me I don't want to have anything to do with CBDC.
it is their jurisdiction to be able to make proper regulation of things in their country and that includes stablecoins or cryptocurrencies circulating in their country and there is nothing wrong with that. but users also have the right to be able to determine which product is best for them. if these legislatures also plan to ban all forms of stablecoin circulating in their country outside of the issuer they appoint, i think that is too much and japan is not worthy of being called a democratic country
I am not sure if it is stricter regulation OR actual enforcement of the law on stablecoins. Tomorrow it may happen that people like you and me put our whole and sole faith in such coins and save our life savings for a longer period and they end up with the collapses like FTX trivia.
The fact that stablecoin aren’t guaranteed been pegged on the US dollars an example is the USDC that got unpegged and the price plummet, this sort of situations are ugly and government with the citizens interest a heart would want to prevent that.
Quote
i think that is too much and japan is not worthy of being called a democratic country
We may be crypto-currency enthusiast but a country has the right right to place ban on things they have deliberated to be wrong and that does not make them less of a Democratic country take for example abortion is illegal in some countries and legal in other. Regardless the real issue is hard to place a ban on a decentralized entity.
It should be kept in mind that past history can be a good indication of the future regarding stablecoins and their inclusion in the cryptocurrency market. It is true that Stablecoins have the potential to provide a more stable environment for both merchants and consumers, and their use can help limit volatility in the cryptocurrency market and Regarding the recent move by the President of El Salvador to offer very good terms for stablecoins I think there is still a need to see how the results will be in the future.
Well, this is interesting for Asian countries especially Japan. I think Japan's move is interesting to examine what its basic motives are even though Japan has been relatively open to cryptocurrencies and blockchain technology in the past. However, without an official statement from the Japanese government or regulator, it's difficult to say for sure.
Well, this is interesting for Asian countries especially Japan. I think Japan's move is interesting to examine what its basic motives are even though Japan has been relatively open to cryptocurrencies and blockchain technology in the past. However, without an official statement from the Japanese government or regulator, it's difficult to say for sure.
I think stablecoin getting such restrictions is an obvious thing as they are backed up by security funds. In this case, it could be a dollar since it has to be a stable asset without which it voids the definition of stablecoins. Now since SEC has already regulated them and opted for securities, other nations would follow the same strategy.
I am not sure if it is stricter regulation OR actual enforcement of the law on stablecoins. Tomorrow it may happen that people like you and me put our whole and sole faith in such coins and save our life savings for a longer period and they end up with the collapses like FTX trivia.
I don't know. sometimes in some occasions, governments are following orderly laws and sometimes they are just off the roof.
Crypto has become a realm which is surprising in itself and there will never be a proper infra structure for the same.
I am not sure if it is stricter regulation OR actual enforcement of the law on stablecoins. Tomorrow it may happen that people like you and me put our whole and sole faith in such coins and save our life savings for a longer period and they end up with the collapses like FTX trivia.
I don't know. sometimes in some occasions, governments are following orderly laws and sometimes they are just off the roof.
Crypto has become a realm which is surprising in itself and there will never be a proper infra structure for the same.
The government and the big banks of the conservative Japan want to have the monopoly of the money in their society and as a consequence, Tether and other stable coins have no place in their future model of economy. I must say I did not expect it from Japan. Let us see what happens next, I doubt they would do the same to Bitcoin, by the way.
I mean it should be expected. Stablecoins standing are shaky right now, we've seen many depeggings from various currencies and it allows the government to play a more central role to prevent it in the name of certainty. I doubt they'd explicitly remove other stablecoins as long as they can still control them to some extent, but it is clear that they'd prefer stablecoins that they can control just like what happens with fiat. Whether you want to rely on the government or a third party that has a sketchy background, using stablecoins to store your wealth will always be risky in the end. 
I have read from a friend that the ruling party of Japan is pretty much conservative and that would make sense considering this measure of stable coins.if I had to guess, I would say that (like the situation in the United States of America) the Japanese government is trying to clear the market so their CBDC has free pass when they decide to launch it among the people of Japan.
The government and the big banks of the conservative Japan want to have the monopoly of the money in their society and as a consequence, Tether and other stable coins have no place in their future model of economy. I must say I did not expect it from Japan. Let us see what happens next, I doubt they would do the same to Bitcoin, by the way.
The government and the big banks of the conservative Japan want to have the monopoly of the money in their society and as a consequence, Tether and other stable coins have no place in their future model of economy. I must say I did not expect it from Japan. Let us see what happens next, I doubt they would do the same to Bitcoin, by the way.
States are slowly getting into their regulation and stablecoins. This is not to say that this is very unexpected. Japan has always been considered friendly to cryptocurrency and therefore there is no reason to believe that its government is stepping on cryptocurrency. This is just the next step in regulating them. Be aware that all private and commercial stablecoins will either follow strict regulatory guidelines or be banned.
Jump to: